NZCU Review (Auckland, Baywide, South and Steelsands)

Our review of NZCU looks at the pros and cons, fees and the Personal Loans, Savings Accounts and Term Deposits, Mortgages Home Loans and Everyday Bank Accounts offered

Updated 24 March 2022

Important: In late 2021, NZCU Baywide, NZCU South, NZCU Central and ACU were rebranded to Unity Credit Union. We will update this guide in due course. The information below refers to the historic NZCU Baywide credit union.

NZCU is not a bank, but for the most part, offers many banking products. Distinctly New Zealand owned, the Hastings-based provider promotes affordable personal loans and flexible savings accounts. Despite only having a handful of branches (see below), all products can be applied and activated online.

In this guide, we look at the main features and products offered by NZCU, including:

Branches: NZCU has four regions, each of which operate branches. The regions and branches are as follows:

NZCU Baywide: Dannevirke, Gisborne, Hastings, (Head Office)m Lower Hutt, Masterton, Napier, New Plymouth, Palmerston North City, Porirua, Taradale, Wainuiomata, Waipukurau, Wairoa and Wanganui.

NZCU Steelsands: Pukekohe, Ruakaka, NZCU Steelsands, Waiuku, NZCU Wilson & Horton and NZCU Marsden Point.
NZCU Auckland: Auckland Airport, Manukau and Penrose
NZCU South: Invercargill and other small branches.

Not a bank: While NZCU Baywide isn't a registered bank, it offers almost everything other banks do.

NZCU Baywide - What We Like

Leading interest rates for personal loans that are transparent and easy to understand, based on your credit profile and whether or not you want a secured or unsecured loan.
5% deposit home loans - any lender who offers this is a significant help to first-home buyers.
Free fees and services to under 18s, over 65s and anyone with $1,000 term deposit.
Term deposit and savings interest rates are calculated daily and paid monthly - NZCU Baywide believes in compound interest, helping you save more much faster.

What We Don't Like

'Everyday accounts', which are NZCU Baywide's bank account equivalent, have monthly and per-transaction fees, and most don't pay any interest. Many banks offer free accounts that do pay interest - see our guide to best everyday bank accounts.
Generally, because NZCU Baywide is not a bank, you'll pay bank fees if you venture outside from using credit union ATMs.
Personal loans come with $250 application fees and third-party fees (credit check, security registration and other related services).
The reviews of the Android and Apple apps are mostly negative, suggesting the online banking experience is less than perfect.
Some savings accounts, we believe the fees are too high. One example is the Christmas Saver, which charges an unavoidable $10 per withdrawal - we're not fans of this at all.

NZCU Baywide Products Review

In this section, we look at the four main products offered by NZCU Baywide - Personal Loans, Savings Accounts and Term Deposits, Mortgages and Home Loans and Everyday Transaction Accounts.

Personal Loans

NZCU Baywide offer secured and unsecured personal loans, covering a range of needs:

Lifestyle loans
Debt consolidation
Car and vehicle loans
Travel loans
Home improvement loans
General person loans

How much can I borrow, and how much does it cost?

If you are a New Zealand citizen and over 18 years old, you can apply to borrow any amount over $2,000 (and up to $60,000) for a maximum of seven years.
The interest rates range from 8.90% to 24.90% p.a, and there is a $250 approval fee for every loan taken out.
NZCU Baywide will assess your loan application and, if approved, classify you as an 'Orange', 'Yellow', 'Green' or 'Blue' borrower. Each colour (and sub-category) has a different interest rate - see Personal Finance rates for more details.
There are also extra costs, such as "third party charges" - these can include credit checks, vehicle check and registering security.
The total loan value, approval fee and third party charges are added together to form the 'loan balance'. This is then repaid at an agreed interest rate over a set number of weeks.

What we like

Affordable secured loan interest rates, which are fixed, giving you certainty. Your weekly payment will be based on how much you can borrow, which will be determined by NZCU Baywide. Their team assesses your credit history, personal circumstances and the amount you want to borrow. You'll never pay more than what you agree to (unless you miss a repayment and incur a late fee).
NZCU Baywide has, historically, offered some of the best personal interest rates based on our research.
While interest rates start at 8.90% shopping around is essential to compare given you may not qualify for the low interest rates. Harmoney, Lending Crowd and other credit unions may offer better deals.

What we don't like

NZCU charges application fees and early repayment fees - while it's common for lenders to charge $250, $300 or even more if you take out a personal loan, other credit unions like First Credit Union don't charge application fees, nor a fee penalty if you to repay early.

Savings Accounts and Term Deposits

NZCU Baywide offers a range of specialist savings accounts, paying a mixed range of interest rates. It also offers a range of term deposit rates (click here for the latest interest rates, which require a $1,000 minimum deposit for adults and $500 for children).

Current savings accounts on offer include:

Success Saver Account - offers a tiered interest rate, from 0.65% to 1.35% p.a.
Online Saver Account - offers a tiered interest rate, from 1.25% to 1.35% p.a.
Goal Saver Account - offers a fixed 0.75% p.a. interest rate
Loyalty Saver Account - offers a (rather unusual) 0% p.a. interest rate
Christmas Saver Account - offers an interest rate of 1.50% p.a with money locked up until November
Jimmy J Junior Saver Account (children aged 0-10 years) - offers an interest rate of 1.50% p.a

What we like

Interest rates are calculated daily and paid monthly
$10 opening deposit for all new Christmas saver accounts (when you sign up between 1 February and 31 October).
The Jimmy J is arguably one of the best kids savings accounts around, and offers a free welcome gift, a birthday card, a passbook to help keep track of savings and a 6-monthly newsletter.

What we don't like

The Success Saver Account and Christmas Saver Account have a $5 and $10 fee respectively every time you move money electronically (i.e. automatic Payments, Direct Debits, Bill Payments, internal transfers between NZCU Baywide accounts) or use a branch service. Because these accounts don't have Eftpos, there's no other way to get your money out.
The savings interest rates are historically lower than other credit unions, such as First Credit Union.

Mortgages and Home Loans

NZCU Baywide offers mortgages, although the rates aren't historically all that competitive, and application and early repayment fees apply.

What we like

Mortgages for those without a 20% deposit - NZCU Baywide offers 5% deposit home loans to those who qualify.
The option to purchase a fixed-price ($750 incl GST) legal fees and conveyancing package, performed by their Napier-based law firm partner. Free pre-approvals (which lets you house hunt knowing how much you can spend).

What we don't like

High than average interest rates when compared to banks, building societies and other credit unions (for one and two-year terms, as well as floating). Having inspected historical data, we don't believe NZCU Baywide offers market-leading interest rates. This could, however, be due to its push to offer loans for those without 20% deposits.
Early repayment costs - $250 plus "costs"
A one-off home loan approval fee of $500

Everyday Accounts

NZCU Baywide offers five accounts:

Everyday Account - NZCU's flagship transaction account costs $3.50/month for account management, and comes with 30 free Eftpos transactions (and 20c for each additional use). Staff-assisted withdrawals and transfers cost $3.00/request.
Everyday Unlimited Account - $10/month for account management covers unlimited Eftpos, Credit Union ATM use, staff-assisted and transactions.
Bill Pay Account - designed to separate money needed for bills to ensure you can pay them when they're due, this account doesn't have an Eftpos card. It is fee-free for everything except for staff-assisted transactions ($3/request).
Bfree Account - Free account management and transactions for anyone between 11 and 17 years old.
Bfree Plus Account (tertiary students) - Free account management and Eftpos fees. The option of an interest-free overdraft; $500 in year one and up to $2,000 for any years after that. A $5 monthly service fee applies for overdrafts.

What we like

-Free use of Credit Union ATMs
24/7 access via Internet and Mobile Banking.
A free Mastercard debit card (i.e. no annual charge)
There is an overdraft facility available, subject to application and approval.
NZCU Baywide offers free fees for a number of customers, including:

Over 65's, Tertiary students, Under 18's and term deposit customers: Free account management, EFTPOS and staff-assisted withdrawals and transfers on all Transaction accounts plus Online Saver and Goal Saver accounts. Term deposit customers need to have at least $1,000 invested.
Home loan customers: Free account management and EFTPOS (staff-assisted withdrawal and transfer fees will still apply).
Withdrawal and transfer fees on Success Saver, Loyalty Saver and Christmas Saver accounts will still apply for over 65's, under 18's, tertiary and term deposit customers.

What we don't

All accounts, other than the Bfree youth account, pay 0% interest on balances.
You'll pay for using bank ATMs even if your account includes unlimited ATM use (this is because NZCU Baywide isn't a bank).
Other bank ATM (not AccessCash ATMs) fees include a $1 ATM fee, (for use at a bank) and above-average international ATM withdrawal charges.
In fairness, the fees charged, according to NZCU Baywide's recent financial statements, don't make a profit. In 2019, NZCU Baywide charged $4m in bank fees, but paid $4.3m, indicating it made a loss on its customer's ATM and general transactions behaviour.
Want to see alternative bank accounts that waive transaction fees? See our Best Bank Accounts guide.

Customer experience

At NZCU Baywide, you’ll have fewer branches to visit compared to big banks. Online, the credit union’s website is well regarded for internet banking. But the tech focus seems to stop there. NZCU Baywide has a disproportionate number of negative reviews for its mobile app experience. Out of five stars, the app has received an average of 2.0 stars according to Android users and 4.0 stars on the Apple store. While an IT issue in 2017 would have been responsible for some negative reviews, a series of one-star reviews were published throughout 2018 and 2019.

About NZCU Baywide

NZCU Baywide started life in 1971, originally called the Whakatu Freezing Works Employee's Credit Union. Renamed to Baywide Credit Union in 1986, NZCU Baywide has grown to 14 branches throughout the Hawke's Bay, Taranaki, Manawatu and East Coast regions.

NZCU Baywide, being a credit union, is owned by everyone who uses its services. For this reason alone, it differs from most New Zealand banks, which are focused on profits for overseas shareholders. NZCU Baywide prides itself on offering "some of the best, high-interest savings accounts" and "competitive and fair personal loan rates".

Unique to credit unions, as an NZCU Baywide customer, you're also an owner. This means you can vote at Annual General Meetings as well as stand for a position on the Board of Directors.

Do you think NZCU Baywide is right for you?

Want to know more or sign up for an account or a loan? Visit your nearest branch or call NZCU Baywide on 0800 229 943.

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Insurance
NZCU Baywide also offers a number of insurance products. We have not reviewed these in any detail. We do suggest getting a quote using our comparison guides below and comparing it to any quote from NZCU Baywide.